Atmos to buy Mississippi Valley Gas, become third largest US utility

Atmos Energy Corp. plans to acquire Mississippi Valley Gas Co., a privately held gas utility, for $75 million in cash and $75 million in stock.

Sept. 24, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Sept. 24 -- Atmos Energy Corp., Dallas, said Monday it will acquire Mississippi Valley Gas Co., a privately held gas utility, for $75 million in cash and $75 million in stock.

Atmos also will assume Mississippi Valley's debt, net of working capital, of $45 million. The transaction is expected to be completed within a year, and is subject to approval by the Mississippi Public Service Commission and compliance with the Hart-Scott-Rodino Act.

Mississippi Valley Gas, based in Jackson, is Mississippi's largest gas utility. It serves 261,500 customers in 144 communities and 36 counties. Residential customers account for 89% of the utility's customer base and 46% of its revenues.

Jackson is the largest urban area served but the fastest-growing is Southaven, a suburb of Memphis, Tenn.

Mississippi Valley Gas operates a 5,500-mile distribution system and 335 miles of transmission pipeline. It has underground storage at Amory and Goodwin in northeast Mississippi, with a combined working gas capacity of 2.05 bcf.

Robert Best, chairman, president and CEO of Atmos, noted the company serves hundreds of communities in Louisiana, Tennessee, Kentucky, and Georgia. In July, Atmos bought Louisiana Gas Service Co. and LGS Natural Gas Co.

With the addition of Mississippi Valley Gas, it will be the country's third-largest pure gas distributor. Best said Atmos has more than doubled in size in 4 years through acquisitions.